How to File Revised Returns If Advance Tax Payments Were Incorrect
- Asharam Swain
- 8 hours ago
- 7 min read
Filing a revised return becomes necessary when there are errors in advance tax payments, as incorrect payments can lead to underpayment or overpayment of taxes, resulting in penalties or delayed refunds. It’s crucial to rectify these mistakes at the earliest to ensure accurate tax filing and compliance with the Income Tax Act. A revised return allows taxpayers to correct mistakes or omissions in the original return, ensuring that the correct amount of tax is paid and any penalties or interest are minimized. This process helps in maintaining proper tax records and avoiding unnecessary complications during the assessment.
Table of Content
Identify the Mistake in Advance Tax Payments
Common mistakes in advance tax payments can result from errors in the assessment year, wrong tax categories, or incorrect challan details. Here are some typical errors that need attention:
Incorrect Assessment Year: Sometimes, taxpayers may mistakenly enter the wrong assessment year while making payments. This can lead to mismatched records, where the payment made is associated with the wrong year, causing discrepancies in your tax filing.
Wrong Tax Category: Taxpayers may choose the wrong tax category when making advance payments, such as self-assessment tax instead of advance tax. This can lead to confusion in the final tax calculation and the need for a correction.
Incorrect Challan Details: A common issue arises from incorrect challan details, such as:
Wrong BSR code (the code identifying the bank branch).
Incorrect date of payment.
Mistakes in the amount paid or challan number. Such errors can create discrepancies in the payment records, making it necessary to file a revised return.
Identifying and rectifying these errors early is essential to avoid any penalties and ensure accurate tax records.
Correcting Challan Details
Correcting challan details depends on the nature of the mistake and how the payment was made. Here are the steps involved in addressing these errors:
Bank Branch Correction:If the payment was made through a bank, certain mistakes, such as incorrect challan details or wrong BSR codes, can often be corrected directly at the bank branch where the payment was made. The bank may update the records, but this is only possible for specific types of errors and under certain conditions. It's important to contact the bank and inquire if the correction can be made.
Assessing Officer's Role:If the bank is unable to correct the mistake, you can approach your jurisdictional Assessing Officer (AO) for assistance. The AO has the authority to rectify challan errors that go beyond the bank’s capacity. This could include issues such as incorrect tax category, amount discrepancies, or issues with challan numbers. The AO will guide you through the process of correcting these errors, but it's crucial to provide all the necessary documentation and proof of payment.
By identifying and correcting challan errors promptly, you can avoid delays in your tax filing and ensure that your payments are accurately reflected in the records.
Filing a Revised Return Under Section 139(5) If Advance Tax Payments Were Incorrect
If you've made an error in your advance tax payments or any other aspect of your original return, you can file a revised return under Section 139(5) of the Income Tax Act. Here's how to proceed:
Eligibility:You can file a revised return if you've discovered any mistakes or omissions in the original return filed. This includes errors related to incorrect advance tax payments or any other discrepancies.
Procedure:
Step 1: Log in to your Income Tax e-filing portal.
Step 2: Select ‘File Income Tax Return’ and choose the relevant assessment year.
Step 3: Choose the return type as ‘Revised Return’ (under Section 139(5)) and ensure you select the correct ‘Mode of Filing’ (either offline or online).
Step 4: Fill in the revised details, correcting any errors, including those related to advance tax payments.
Step 5: After entering the corrected data, review the return thoroughly and proceed to submit the revised return.
Deadline:The revised return must be filed by December 31 of the relevant assessment year, or before the completion of the assessment, whichever is earlier. However, the deadline for FY 2023-24 (AY 2024-25) has been extended to January 15, 2025, for resident individuals. Make sure to adhere to this deadline to avoid any penalties.
Rectification Requests Under Section 154
If the mistake in your tax return is apparent from the records and does not require a change in income, you can file a rectification request under Section 154. This process allows you to correct errors such as wrong advance tax payments.
When to File a Rectification Request: You can file a rectification request when:
There is an arithmetical mistake or any error apparent from the records.
The tax demand is incorrect or the advance tax paid is not properly accounted for.
Procedure:
Step 1: Log in to the Income Tax e-filing portal and go to the ‘Rectification’ tab.
Step 2: Choose the Assessment Year for which you wish to file the rectification.
Step 3: Select the type of rectification (such as correcting mistakes in advance tax payments).
Step 4: Submit the rectification request and review the rectification details.
CPC vs AO:
CPC (Centralized Processing Centre) handles most rectification requests. If your case is processed by CPC, it will handle the rectification.
If your case is under scrutiny or assessment by your Assessing Officer (AO), the rectification request should be submitted to the AO, who will make necessary corrections.
Tracking the Status of Rectification
After submitting your revised return or rectification request, it’s important to track its status to ensure the process is completed smoothly.
Tracking the Status:
Once you have filed the revised return or rectification request, you can track its status through the Income Tax e-filing portal.
Log in to the portal and navigate to the ‘My Account’ section, where you can see the current status of your rectification request or revised return filing.
E-Verification:
After filing the revised return, it is essential to complete the e-verification process to validate your return electronically.
You can verify your return through methods such as Aadhaar OTP, EVC, or digital signature.
Make sure to complete the e-verification step to avoid your return being considered invalid.
Tracking Rectification Status:
You can also track the status of your rectification request (under Section 154) by logging into the portal and checking the ‘Rectification Status’ section.
The system will update you on whether your rectification has been accepted, processed, or if further steps are required.
Conclusion
Filing a revised return or submitting a rectification request to correct advance tax payment errors is a straightforward process, but it requires attention to detail. By following the steps outlined for filing under Section 139(5) and requesting rectification under Section 154, taxpayers can rectify mistakes and ensure their tax returns reflect accurate payments.
Remember to keep an eye on the deadlines and e-verify your returns to complete the process. By staying proactive, you can maintain compliance with the Income Tax Act and avoid potential penalties. Always track your rectification status to ensure timely processing and avoid further complications.
FAQs
1. Can I file a revised return if I made an error in advance tax payments?
Yes, you can file a revised return if there was an error in advance tax payments. The mistake could be in the payment amount, assessment year, tax category, or challan details. A revised return allows you to correct these errors and update your tax filing.
2. How can I correct incorrect challan details in advance tax payments?
If you made a mistake in the challan details (such as BSR code, payment date, or amount), you can contact your bank branch where the payment was made to correct certain errors. If the bank cannot make corrections, you must reach out to your Assessing Officer for assistance with the changes.
3. What is the deadline for filing a revised return?
The revised return should be filed by December 31 of the relevant assessment year, or before the completion of the assessment, whichever is earlier. For FY 2023-24 (AY 2024-25), the deadline has been extended to January 15, 2025 for resident individuals.
4. What is Section 139(5) of the Income Tax Act?
Section 139(5) of the Income Tax Act allows you to file a revised return if there are errors or omissions in the original return. It can be used to correct mistakes related to advance tax payments, such as incorrect details or underreporting of tax paid.
5. Can I request a rectification if I filed my return incorrectly but did not notice it initially?
Yes, if the error is apparent from the records, you can file a rectification request under Section 154. This is typically done after receiving an intimation under Section 143(1). Rectification can only be requested if the mistake does not involve a change in income.
6. How is rectification different from filing a revised return?
A revised return is filed under Section 139(5) when there are errors or omissions in the original return, such as incorrect advance tax payments. A rectification request under Section 154 is filed when there is an apparent mistake in the return that can be corrected without changing the income.
7. Can I track the status of my rectification request?
Yes, you can track the status of your rectification request online through the Income Tax Department’s portal. This helps ensure transparency in the process and reduces the need for physical follow-ups.
8. What happens if I miss the deadline for filing a revised return?
If you miss the deadline, you will not be able to file a revised return. However, you may still be able to rectify certain errors through the rectification request process, depending on the nature of the mistake and its impact on the return.
9. Is there a penalty for filing incorrect advance tax payments?
If incorrect advance tax payments result in underpayment of taxes, you may be subject to interest under Section 234B and 234C. Penalties may also apply if the underpayment is significant or if you deliberately misreport your tax payments.
10. Can I file a revised return if I mistakenly chose the wrong tax regime?
Yes, if you mistakenly selected the wrong tax regime in your original return, you can file a revised return to correct this mistake. The revised return can reflect the correct tax regime and adjust the tax liability accordingly.
11. Do I need to e-verify my revised return?
Yes, after filing a revised return, it must be e-verified to complete the process. You can e-verify the return using options like Aadhaar OTP, net banking, or digital signature.
12. Will filing a revised return automatically correct the advance tax mistake?
Filing a revised return will help correct the advance tax mistake if the error is related to the information provided in the return. However, if there is an issue with the challan details, you may need to rectify it separately by contacting the bank or your Assessing Officer.
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